IFRS Topics

Last update 25/11/2019 Deferred cost Capitalised costs EM industry is about other costs to obtain a contract in the entertainment and media (E&M) industry Incremental costs to obtain a contract will be capitalized if they are expected to be recovered. Such costs may be expensed as incurred as a practical expedient if the amortization period … Read more

Last update 29/11/2019 Debt instruments at FVOCI – A debt instrument is classified as subsequently measured at fair value through other comprehensive income (FVOCI) under IFRS 9 if it meets both of the following criteria: Hold to collect and sell business model test: The asset is held within a business model whose objective is achieved … Read more

Last update 20/12/2019 Dealer sales vehicle incentives – To apply IFRS 15, original equipment manufacturers (OEMs) will need to change the way they evaluate incentives. Original equipment manufacturers need to use significant judgement when they identify separate performance obligations (i.e., units of account), which may be different from those identified under IAS 18. Original equipment … Read more

Last update 24/12/2019 DCF Calculation Value of the business – This is a simple example to show the workings of a Discounted Cash Flow (DCF) model, which is hopefully also understandable for non-mathematicians. Using cash-flow-based measurement techniques is done using all the following factors: estimates of future cash flows. DCF Calculation Value of the business … Read more

Last update 12/11/2019 Topics hide Introduction References (to familiarise yourself with the subject): What are the inputs to the model? Revenue Revenue growth Turnover/Attrition Terminal value Net margin Inventory write-up Contributory asset charge Charge for trade names Charge for other technology Income tax rate Unit of measurement Partial first year factor Present Value Factor Present … Read more

Last update 01/12/2019 Customer lists – In a Business Combinations, this is a intangible asset and is therefore recognised separately from goodwill, provided that its fair value can be measured reliably. This customer-related intangible asset does not arise from contractual or other legal rights, but meets the definition of an intangible asset because it is … Read more

Last update 04/12/2019 Customer contracts and the related customer relationships – In a Business Combinations, these are intangible assets and are therefore recognised separately from goodwill, provided that their fair values can be measured reliably. These marketing-related intangible assets meet the definition of an intangible asset because they arise from contractual or other legal rights. … Read more

Last update 23/11/2019 Current and non-current liabilities explains the liabilities as in the Conceptual Framework 2018: this is the definition: A liability is a present obligation of the entity to transfer an economic resource as a result of past events. A liability is defined as a company’s legal financial debts or obligations that arise during … Read more

Last update 12/11/2019 In a currency swap operation, also known as a cross-currency swap, the parties involved agree under contract to exchange the following: the principal amount of a loan in one currency and the interest applicable on it during a specified period of time for a corresponding amount and applicable interest in a second … Read more

Last update 03/11/2019 Curing of a credit-impaired financial asset presents the explanation of what a credit-impaired financial asset is, how to account for a credit-impaired asset as long as it is credit-impaired and how to account for a credit-impaired asset that is no longer credit-impaired (i.e. curing of a credit-impaired financial asset which means the … Read more